Chalet Hotels Limited (CHL), owner, developer, asset manager and operator of high-end hotels and resorts in India, marks its investment foray into leisure as it completes the 'ACQUISITION OF THE DUKES RETREAT', an 80-room Resort, spread over ~7.5 acres, surrounded by gorgeous waterfalls and picturesque views of the Western Ghats. A dominant player in the business hospitality space, CHL has an earned repute of creating asset value through curations of high-end hospitality assets in key metro cities and offering exceptional guest experiences.
CHL has completed the acquisition for an Enterprise Value of Rs. 1,330 mn (to be adjusted for cash on books) by way of purchase of equity shares of:
- The Dukes Retreat Pvt. Ltd.: Owner of hotel structure and business
- Sonmil Industries Pvt. Ltd., .: Owner of the land of the hotel
With this acquisition, CHL will extend its expertise towards expansion and up-gradation of the property to reposition it as an upper-upscale, green, lifestyle resort.
The Dukes Retreat is strategically located at a comfortable drivable distance from both Mumbai and Pune. The Resort includes 18 Deluxe Rooms, 54 Executive Rooms and 8 Cottages, and offers a gourmet experience at the in-house restaurant with panoramic views of cliffs and valleys. Other facilities at the Resort include an outdoor pool, play area for kids, spa, and a fitness center. The property has been a preferred destination for leisure travelers, wedding celebrations, and corporate events.
Following the announcementSpeaking on the acquisition, Mr. Sanjay Sethi, MD & CEO Chalet Hotels Limited said, "The Dukes Retreat' is a unique resort with stunning views and a strong emotional connect with large number of families from Mumbai and Pune. We welcome the guests and the associates of the Resort to the Chalet family. Chalet Hotels Ltd is positioned in a sweet spot with several of its capex projects approaching commercial opening in the next few months. The Dukes Retreat is the new addition."
Key highlights of the property:
FY23 witnessed a strong resurgence in leisure travel with demand coming from all sections including workcations, weekend travelers, weddings, socials and MICE. Given its picturesque location and its brand recall with travelers, the property has witnessed consistent uptick in earnings in the recent past.
This property, given its unique features, has the potential to be positioned as an upper-upscale green, lifestyle resort. Chalet will commence renovation, upgradation, and inventory addition (42 rooms) on this property over the next few months. This refreshed experience is sure to delight the old patrons and new alike.
With this acquisition, CHL will further enhance diversification in its portfolio with leisure segment. Apart from being EPS accretive, this deal comes with an IRR of >20%.
Shares of Chalet Hotels Limited was last trading in BSE at Rs. 360.50 as compared to the previous close of Rs. 361.85. The total number of shares traded during the day was 6055 in over 354 trades.
The stock hit an intraday high of Rs. 373.35 and intraday low of 359.70. The net turnover during the day was Rs. 2217952.00.